Todays Sentence

I’m always thinking about losing money as opposed to making money. Don’t focus on making money; focus on protecting what you have. – Paul Tudor Jones

Stock to trade 23 02 2011

• Pantaloon :- NR7 pattern in Pantaloon. Buy above 274, Sell below 264.
• L&T :- 70 TA Turtle downside breakout in LT 30 min chart. Sell with stop loss above 1635.

Choppy market, Ready for big move

Nifty Watch:- The Nifty opened at 5478 with a gap of 51 points. The Index remained choppy for whole day. It touched its day high at 5519. After that it made a low at 5427 with a decrease of 92 points to its day high and finally closed at 5475, almost at yesterday's close. Overall it’s a choppy market today. Nifty made an inside day pattern today. The Inside day suggests indecision in the market. After such periods of indecision, a big move usually comes about. If the nifty moves above 5520 then it can see an up move, while a move below 5410 should see the beginning of a
downtrend. Traders should watch for these levels to break. Between 5410 and 5520, the market is likely to remain choppy and almost untradeable.

Trend:- The short term trend remains up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average but both are coming closer.
TA Insync(55-5) is now above the level of -45 and still moving up. This indicator is suggesting upside momentum.
Level:- Looking for support at 5400, then 5350. Major resistance comes at 5550.

Market Outlook for 23 02 2011

RIL magic failed to work as the global cues took precedence over the RIL-BP deal. Though RIL remained in the positive territory and traded just around Rs1000 for most part of the session, it failed to have any ruboff impact on other stocks. The other heavyweights were under pressure throughout the session and that kept the indices in check. Nifty did try to trade above 5500 but failed to do so as the European markets too opened on a weak note. The airlines stocks as well as the OMCs were the worst impacted as crude oil zoomed past $ 92 on increasing Middle East crisis. Jet lost around 8% on heavy volumes while BPCL, HPCL and IOC were amongst significant losers. Idea was also amongst the losers as it dropped around 5%. Even the banking stocks that were looking resilient till last session also succumbed to the overall negativesentiments. Some of the top losers were GE Shipping, Cummins, Educomp, IVRCL infra, Bombay Dyeing, Areva, MLL, Sun Tv, Aurobindo, Suzlon, Petronet, Hero Honda and Ranbaxy. RIL led the list of gainers that includes Cairns, HDIL, Titan, GSPL, Indusind bank, Sterlite and Renuka sugars. But, overall it was a disappointing session as Nifty failed to sustain higher levels.
We expected markets to trade higher after the RIL announcement but global cues caught up with the sentiments and came as a shot in the arm for bears. It’s difficult to take any confident call and that has been the case for past 3-4 weeks now. There has been a deluge of bad news and now the global cues are also turning negative. 5375-5400 should continue to be a strong support zone till the budget and we might see a technical rebound from these levels. The stocks that could lead the rebound are Bajaj Auto, Axis Bank, SBI ( support likely around 2680-2700) and RIL. Some others that are looking positive are Sterlite, Indusind Bank, ACC and Sobha.

Nifty has immediate support around 5440, 5415 and then around 5375-80.